ZTE has released its interim results for the six months ended June 30, 2012.
ZTE has registered revenue of RMB 42.64 billion for the period ended June 30, 2012 registering a year-on-year (y-o-y) increase of 15.2 per cent in its revenue. For the period under consideration, ZTE reported operating revenue of RMB 20.89 billion from the domestic market, which accounted for 49 per cent of company?s overall operating revenue. There has been y-o-y growth of 26.4 per cent in the company?s overall operating revenue.
Representing y-o-y growth of 6.2 per cent in overseas revenue, ZTE reported operating revenue of RMB 21.76 billion at the end of June 30, 2012. Overseas revenue contributed 51 per cent to the company?s overall operating revenue. In the reporting period under review, ZTE has worked towards enhancing its market position by focusing on growing its business in developed nations and by cooperating with mainstream global carriers. It has also consolidated market share in emerging markets.
ZTE reported revenue of RMB 21.28 billion for carrier network products at the end of June 30, 2012, representing y-o-y growth of 3.9 per cent. The revenue from terminal products stood at RMB 14.25 billion, representing y-o-y growth of 27.1 per cent. Its revenue from telecommunication software systems, services and other products stood at RMB 7.11 billion, registering y-o-y growth of 33.8 per cent.
For the same period, the company?s profit before tax stood at RMB 656 million. It has witnessed y-o-y decrease of 48.5 per cent in profit before tax. As of June 30, 2012, basic earnings per share for the company stood at RMB 0.07.
ZTE witnessed 70 per cent increase in sales in its government and enterprise business for the six months period ending June 30, 2012 in comparison to the corresponding period last year. The company managed this growth owing to the launch of data center products and a series of smart solutions in the government and business arenas, including smart mine, smart city and the smart traffic system. ZTE also pushed forward its videoconferencing products amongst leading operators in Europe and the United States.
In the first half of 2012, ZTE focused on capitalising growth opportunities for 4G and wireless products in Asia Pacific markets like China, Japan and India.
In the second half of 2012, ZTE is looking forward to tap opportunities presented by capacity expansion and upgrades of global wireless networks, national broadband strategies and changing government and corporate smart terminal requirements. ZTE is focused on strengthening its cash flow, controlling risk and optimising processes with a view to improving efficiency.
